President Donald Trump gave his first congressional address on March 4, 2025, and it was on Tuesday only that the new 25% tariff on goods from Canada and Mexico was levied. Moreover, the previous 10% tariff on Chinese imports was increased to 20%. This has essentially given way to an upcoming trade war that can turn quite ugly.
Trump also mentioned in his Congress address that in April, even higher tariff rates will be levied, as he thinks this will adjust the trade imbalances that have been going on for years.
Regarding his decisions about the tariffs, Trump said, “Other countries have used tariffs against us for decades, and now it’s our turn.” He was referring to the high duties that China and the EU impose on US goods.
However, China’s Foreign Affairs Ministry has not taken Trump’s words and actions kindly and said, “If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.” These words confirm that a trade war is highly likely and that the US will face retaliation from both Canada and China.
What has appeared to be more concerning is the mention of “any other type of war,” which can potentially refer to WW3. Since Trump’s return, America’s relationship with Canada and China has significantly worsened, and now, after the meeting with Volodymyr Zelenskyy, Ukarinae has also been added to that list.
Moreover, China has also mentioned that Trump’s rates violate the rules of the World Trade Organization, and therefore, the country lodged a complaint as well back in February. Additionally, to fire back at America, China has added 15% tariffs on farm products from America.
This new regulation covers farm products such as wheat, cotton, chicken, and corn. A 10% tax would also be levied on sorghum, beef, fruits, soybeans, etc., imported from America.
On behalf of China’s Foreign Ministry, Lin Jian clearly stated they “fight till the end. I want to reiterate that the Chinese people have never feared evil or ghosts, nor have we ever bowed to hegemony or bullying.”
He further added, “Pressure, coercion, and threats are not the right ways to engage with China. Trying to exert maximum pressure on China is a miscalculation and a mistake.” Canadian PM Justin Trudeau shared similar thoughts, saying, “Today, the United States launched a trade war against Canada, their closest partner, ally, and friend.”
He continued, “At the same time, they’re talking about working positively with Russia, appeasing Vladimir Putin, a lying murderous dictator. Make that make sense. This trade war hurts American families and Canadian families.”
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Trudeau’s statement about how these rates will hurt American families makes sense because Americans will soon see a rise in the price of items like vehicles, gadgets, toys, alcohol, and groceries. Given that 75% of America’s toys and sports equipment come from China, the impending price hike makes sense.
It should also be noted that America depends largely on Canada and Mexico for cars because those vehicles come from plants with bases in those countries. However, Trump posted on Truth Social, “If companies move to the United States, there are no tariffs!!!”
While what he says can be true in theory, it would be extremely difficult to do in practice for obvious reasons. As the trade war intensifies among these nations, it now remains to be seen which country suffers the worst and how the population reacts to it.
